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I have a project where sitemanager have access to placing views in panels, but not access to views. Setting this up, I found that there was no option to expose the view mode for rendered entities to panels. Searching a bit showed that others have the same need, so I made a patch. Hopefully it can be of use to somebody else.

The logic of which list of view modes to show (what entity is listed) in the panel_pane is a bit flawed, as it depends on the base_table. Any suggestions of how to better do this would be greatly appreciated.

I'm sorry, for some reason I hadn't seen your post from back in september.
My guess is that the dev code changed in some way to make the patch not work as intended.
Unfortunately I'm out of the country at the moment with no way of checking what version of ctools I'm running the patch on.
I'll check it out once I get back and see if I can't get it to work on the newest dev version.
If it works at my end, an export of the view you're trying to make this work on might be helpful for debug.